Save Money Over Renting by Buying
More than a third - 37% - of tenants have stress arising from problems with landlords and letting agents and 16% have 'sleepless nights' as a result. New research from the Association of Residential Letting Agents details many of the issues which tenants have suffered from some landlords in the private rented sector. We examine the new research here and in consequence encourage tenants to consider mortgage sharing rather than waiting for the rental sector to police itself properly.
One fifth of tenants - there were 2,100 in the sample - reported reservations about their landlords and agents from the first day of their tenancy. This rose to 43% of those in London. More than half had at least one problem with a landlord or agent in the last five years.
Renters are now looking to share a mortgage to save money renting. Instead of renting with someone else, renters are chossing to buy with someone else, normally a friend, current flatmate or a family member. By doing renters save £1,000s in lost rent and benefit from any gains in property price increase.
Save Money Renting in...:
Save money renting in Cricklewood
Landlords and letting agents must be licensed
Worryingly, nearly a quarter - 23% - of tenants did not know that landlords and letting agents must be licensed to operate. Additionally a majority 54% reported that it did not cross their minds to check this qualification.
Problems with repairs
When a problem occurred, landlords and agents took 36 days on average to fix the issue and as much as one in seven tenants claimed that a problem was never solved. The most common problems reported - 18% - were faults with kitchen cupboards and worn carpets. Some 14% of tenants said they spent their own money on repairs and 9% reported moving out and unfairly losing a deposit regarding an issue. The survey also flagged up a privacy issue: 9% reported contractors being admitted to a property without prior tenant knowledge.
You know all too well what it is like to be waiting for your landlord to fix a problem. When you buy, although you have to fix a problem your self, at least you are in control of who to use, the cost of materials and how quickly the problem is fixed. Landlords often try and get highend replacements at the renter's cost with long delays whilst these are fixed.
Defects in knowledge, transparency and respect
Some 8% of respondents reported a lack of clarity about letting fees. Some tenants - 6% - claimed that agents did not have sufficient knowledge regarding a property and the same figure reported agents being 'pushy'.
Save money, time and stress wasted in renting
It is clear that there is a knowledge gap generally to overcome regarding property in general. Share a Mortgage is working to make people more aware that they can save as much as £1,700 every month if they buy rather than rent.
The Association of Residential Letting Agents, which commissioned the survey, stated that it wished for a 'fully regulated industry'. We strongly applaud this sentiment, however, many current tenants could undoubtedly save not only money, as stated but time and stress as well if they joined together and shared mortgages. This is borne out by ARLA's survey.
Mortgage sharers can avoid the prevalent long waits for repairs, stress, sleepless nights and unannounced intrusions by workmen which too many tenants have to put up with. The more people they share with - up to four - then the more mortgage sharers can divide costs between themselves and not end up spending over the odds in rent and even losing a sizeable deposit for the privilege.
Shared Ownership Protection: real legal protection for all mortgage sharers
Central to Share a Mortgage's offering is our unique Shared Ownership Protection, unique in the market, which combines a Declaration of Trust with a Cohabitation Agreement. Not only does every person who contributes to repaying the mortgage have their stake in the property protected and recognised, but there is also a pre-agreed method set out for leaving the arrangement if they wish.
All sharers can also agree as many or as few house rules as they wish - and all items in the agreed document are legally binding - which help encourage harmonious living. At the end of a share, which need only be for a few years (normally until the early repayment charging period finishes), all sharers might also make a capital gain on selling, depending on property prices at that time.
We hope that unscrupulous and illegal landlords get removed from the rental sector but would encourage tenants to consider sharing mortgages as a much better alternative if they are able to.
If you wish to stop being a tenant and, instead, become a home owner, please call 020 7112 5388.
Read other related articles:
1. Leaving a shared ownership property
2. Cohabitation Agreement is Essential for Unmarried Couples
